QUESTION 4 Sofea provided the following information about her trade receivables. VIAT 22010 P 21 2 2U2(e U On 28 February 2016 Wade Designs, which owed Sofea $5 100, was declared bankrupt. A cheque for $1 800 was received. The balance of the debt was irrecoverable. On 29 February 2016 the remaining trade receivables were: Age of debt (Months) Up to 1 month 1 to 3 months 2. Amount ($) Provision for doubtful debts percentage (%) 18 000 12 200 5. 3 to 6 months 3 300 10 2 200 35 700 Over 6 months 20 On 1 March 2015 the provision for doubtful debts account was $2 050. REQUIRED Prepare the general journal to record the entries for Wade Designs on 28 February 2016. A narrative is not required. Calculate the provision for doubtful debts on 29 February 2016. Prepare the provision for doubtful debts account for the year ended 29 February 2016. (e) () (e) ept applied by Sofea in providing for doubtful debts.

QUESTION 4 Sofea provided the following information about her trade receivables. VIAT 22010 P 21 2 2U2(e U On 28 February 2016 Wade Designs, which owed Sofea $5 100, was declared bankrupt. A cheque for $1 800 was received. The balance of the debt was irrecoverable. On 29 February 2016 the remaining trade receivables were: Age of debt (Months) Up to 1 month 1 to 3 months 2. Amount ($) Provision for doubtful debts percentage (%) 18 000 12 200 5. 3 to 6 months 3 300 10 2 200 35 700 Over 6 months 20 On 1 March 2015 the provision for doubtful debts account was $2 050. REQUIRED Prepare the general journal to record the entries for Wade Designs on 28 February 2016. A narrative is not required. Calculate the provision for doubtful debts on 29 February 2016. Prepare the provision for doubtful debts account for the year ended 29 February 2016. (e) () (e) ept applied by Sofea in providing for doubtful debts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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